Abercrombie & Fitch Co. discloses the following footnote relating to its retirement plans in its 2017 10-K report:
16. SAVINGS AND RETIREMENT PLANS:
The Company maintains the Abercrombie & Fitch Co. Savings & Retirement Plan, a qualified plan. All U.S. associates are eligible to participate in this plan if they are at least 21 years of age. In addition, the Company maintains the Abercrombie & Fitch Co. Nonqualified Saving and Supplemental Retirement, composed of two sub-plans (Plan I and Plan II). Plan I contains contributions made through December 31, 2004, while Plan II contains contributions made on and after January 1, 2005. Participation in these plans is based on service and compensation. The Company’s contributions to these plans are based on a percentage of associates’ eligible annual compensation. The cost of the Company’s contributions to these plans was $14.4 million, $11.1 million and $15.4 million for Fiscal 2017, Fiscal 2016 and Fiscal 2015, respectively.
a. Does Abercrombie have a defined contribution or defined benefit pension plan? Explain.
b. How does Abercrombie account for its contributions to its retirement plan?
c. How is Abercrombie’s obligation to its retirement plan reported on its balance sheet?
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